Based on Changes in the Estonian Value Added Tax Act, we will proceed with the system change on the 2nd of Jan 2024 on all items in 20% VAT, and we will change them to 22% VAT.
1. there would be change in the VAT rate setting from 20% to a new rate of 22%.
2. We will convert all open account items that include an item at the 20% rate with a date of 01/01/2024 and later to the new 22% rate. This applies to all items that are not settled yet.
Therefore, prepare and settle historical bookings with the old rate, if possible, by the end of the hotel day, 31st of Dec 2023. Overstays can be billed in advance. It is impossible to change the document's VAT for hotel bills, but for invoices, it is possible.
In addition, in the interim period, items already reflected in the performance reports by night audit may have a different VAT rate. Tax documents, generated in the interim period since the new rate and system mass recalculation, must be adjusted manually. The change is made on the selected day after considering the most appropriate time for the system-wide change.
What is required on your part?
1. Check if changing the default VAT for advances and proforma invoices is necessary.
2. Check if it is necessary to change the default service for Deposit invoice.
3. Check if it is necessary to change the VAT on other Hotel services.
4. Check if it is necessary to change the VAT set at RateCode and packages.
5. Edit and save block type bookings if using - watch video on how to save.
Change step by step:
1. Wait for the across-the-board VAT change from 20% to the new 22% rate, this will take place during 2 January 2024, then only proceed to check and change the VAT of the other settings.
2. Check the default rates in the system settings:
3. Check VAT on hotel services:
4. Check RateCodes and stay packages settings.
Tip: If you are not using a different VAT rate for specific RateCodes, then leave the VAT rate --by room type--, this will automatically reflect the rate from the room type settings and any tax change will be easier for you.